Tony Abbott has branded Kevin Rudd's claim of a $70 billion shortfall in his election platform as ''simply a fantasy'' but refused to say how he would replace billions of dollars in revenue forgone by scrapping a slew of Labor taxes.

The claim and counter-claim came in the keenly awaited first leaders' debate of the 2013 election campaign, scored by many observers as a narrow win to the challenger who, unlike Mr Rudd, spoke without notes in accordance with the agreed rules.

Kevin Rudd and Tony Abbott shake hands before last night's debate at the National Press Club in Canberra. Photo: Andrew Meares

Under attack from Mr Rudd over undisclosed Coalition costings, Mr Abbott said he had no ''big scalpel'' poised to slash spending in health and education as he hit back at Labor's record on asylum seeker boats, and claimed Labor had killed the China resources boom with a raft of taxes.

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Lagging slightly in the latest opinion polls and thus needing a strong performance with less than a month to the election, a visibly nervous Mr Rudd appealed to voters to consider Labor's economic management credentials through the GFC and the end of the mining boom, arguing he had the policies to meet new challenges from climate change to the national broadband network.

But in an otherwise drab debate, he also moved to politically wedge his conservative opponent on the issue of marriage equality announcing a new push to legalise same-sex marriage.

Close call ... viewers were divided on preference after the debate.

He said a parliamentary vote on full marriage equality would take place within the first 100 days of a re-elected Labor government.

Mr Abbott, who personally opposes any change to the Marriage Act, refused to be drawn on the question of whether he would grant coalition MPs a free or conscience vote on the issue.

Citing the claimed $70 billion shortfall, Mr Rudd accused Mr Abbott of having undeclared plans to increase the 10 per cent goods and services tax to replace revenue from the mining and carbon taxes and to fund his direct action plans.

''Let's just say that the $70 billion can't be made up in terms of all the cuts which have been partly foreshadowed to jobs, health and education,'' Mr Rudd said.

''Mr Abbott, and the deputy leader Julie Bishop … and (shadow treasurer) Mr Hockey have said that the review of the goods and services tax is on the table.

''Will it be increased? And will it go to food?'' It was a claim Mr Abbott rejected outright promising repeatedly that the GST would not be changed despite acknowledging that a Coalition government would conduct an audit of government spending and would review the entire tax system including the GST.

''I think our country, I think the people at home who are watching this deserve better than a cheap scare campaign from the Prime Minister of this country,'' Mr Abbott said.

''This idea that the Coalition is ready with a great big scalpel to slash health, to slash education, to slash jobs is simply wrong.''

Speaking second, determined by a the coin toss earlier in the day, Mr Abbott used his opening salvo to call on Australians to back Labor's goal of ''a new way'' by dumping Kevin Rudd.

In a debate in which neither side landed a knock-out punch on the other, both men appealed to the hip-pockets of middle Australia.

''The election is about a clear choice on the economy, on jobs, on how we support families under pressure, and how we support education and health,'' Mr Rudd said.

''I can see a great new future for Australia, and the government I lead knows how to build that future for all Australians.

''I offer a new way to secure Australia's future.''

Mr Abbott said the election was not about either leader, ''it's about you the people of Australia''.

211 comments

Anyone who thinks Twitter is an essential part of managing an economy and running a country will not get my vote. Gen Y is the last group of people to listen to.

Commenter

John

Date and time

August 12, 2013, 6:45AM

Yeah let Gen. Y suffer under climate change and near economic collapse as the US winds back quantities easing (the worlds GFC crutch), who cares about them or their kids, they're all lazy and stupid anyway from the point of view of baby boomers who have created all of the worlds economic and ecological problems. Don't give Gen. Y a leg up with an ETS and NBN, kick em while they're down to keep super and interest on term deposits health.

Commenter

FrankM

Date and time

August 12, 2013, 8:13AM

Every group including Gen Y have a vote. Every group is entitled to know how the coalition will pay for its promises including a shift in the tax balance by reducing taxes and charges for the wealthy and increasing taxes on middle income earners. No politician deserves to be taken on faith. The Liberals are asking for a lot more faith than substance on its spending proposals.

Commenter

Good Logic

Date and time

August 12, 2013, 8:25AM

That's what Mitt Romney said...

Commenter

OCD

Location

Melbourne

Date and time

August 12, 2013, 8:36AM

The AGE poll response is about right, the others some other channels lost the plot, THAT WAS NOT A DEBATE. furthermore, it told us nothing that had not been said before, other than Rudd committing to gay marriage as higher priority than our dismal economy hidden by them borrowing more money for us as a debt. If people want a real debate, then challenge Rudd and Abbott to debate Clive Palmer, then you will have a real debate on policy and economy, but they keep refusing Clive's offer of a debate. Rudd is a waste of time, 18 top ministers/candidates resigned mainly over him, 2 more disendorsed this week, and those remaining helped rid him not long back, Rudd is finito, after the election will be removed and that means another unelected PM. We are left with Abbott and Palmer, Palmer with more candidates in contention and started forming a ministry to govern after Sept 7 and great policy and innovation, the party emerges this week to the public. All that restricts the Palmer party, is the media not respecting the party status at this stage and are so behind the times they rate the greens as bigger with less candidates, no ministry, not setup to govern and no policies, and not running for PM like Clive is. They ignore that most people are saying they want an alternative Government. So really, is it a set of out of touch people as in the media, ALP, LIBS, and GREENS. I strongly suggest the media look deeper into the Palmer party rather than await our emergence from this week onwards.Lets have a real debate, Bring on Clive, why are they scared to debate him? it is because his party has innovative policies coming on.

Commenter

brian

Location

CHISHOLM

Date and time

August 12, 2013, 8:49AM

John... that comment is a bit misguided.No one anywhere thinks that twitter has any part of running the economy or the country!To reword what you have stated .... How can Australians really trust a leader who is illiterate with basic technological advances in communication mediums.Twitter, fakebook, etc ... are just communication mediums that are housed in unusual facades.Its one thing to choose not to use basic communication mediums ... its another thing, not being able to use them, or worse being too arrogant to use them (thinking that their voter audience doesn't use or value those communication mediums).Your last sentence doesn't even make sense, and has no direction or clear point."Gen Y is the last group of people to listen to." ... what the ....

Commenter

Yuppy

Location

Yuppy Ville

Date and time

August 12, 2013, 8:59AM

@FrankM. The irony of your comment trying to be ironic. Gen Y have no idea what's going on. An ETS will have zero positive affect while the population in Australia and globally grows exponentially. The NBN will achieve nothing when Australia goes broke. Gen Y priorities are a bit weird and confused. You get some of it right; that is Baby B's are shafting you, but you've even been scammed with what the issues are. It's time for Gen Y to get a bit smarter, understand what's going on and counter it. Until then, what you can expect is more of the same, the entire wealth of Australia will be consumed over the next couple of generations with nothing left for Gen Y. The signs are very obvious for you, if you think for yourself and stop listening to socialist clowns whose agendas are entirely different..

Commenter

JohnBB

Date and time

August 12, 2013, 9:12AM

OCD, the only purpose Obama served is to let the banks get away with trillions. If it were to Goldman Sachs, they would campaign for him for another term. Otherwise he presided over the biggest surveillance program in history and a CIA induced Syrian 'revolution'. So much for the Nobel Peace Prize.

Commenter

Peter Schmidt

Date and time

August 12, 2013, 9:17AM

Just deleted my herald sun useless subscription it is a useless newspaper these days although being a candidate in elections I should read all papers.

Commenter

brian

Location

CHISHOLM

Date and time

August 12, 2013, 9:28AM

GoodLogic

I am still trying to work out how Labor will pay for their promises that they've already implemented

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